Why Hire A Financial Planner?

The Benefit Of Professional Experience

If your primary exposure to financial planning is what you’ve seen or heard on TV or the radio, you might think financial planners help you outperform the investment and savings markets. While that may, in some cases, be true – it’s actually not the key service these important financial professionals provide. The chief advantage that financial planners bring to the equation is the understanding of all financial tools and resources and how they best fit with the individual needs of companies and individuals for the present, long-term, and distant future.

Some of the best reasons to work with a financial planner are:

  1. Comprehensiveness – An experienced Financial Planner will insist on addressing even those financial issues that may not be comfortable, such as: How do you plan to take care of aging parents if required? Is your will up to date? What plans are in place for sending kids to college? What happens if you lose your health, job or business?
  2. Action – The idea of a financial plan is simply not enough. The elements of that plan must be put into effect – from mundane paperwork to important banking requirements. Very few people ever do this on their own and, of those who do, many delay– costing precious time that cannot be regained. It matters.
  3. Education Let’s be honest. Investment markets can be a roller coaster at times. But it’s important to not let temporary conditions impact your long-term plans. Likewise, you can’t afford to ignore trends that can lessen your potential returns. When you work with a trusted financial planner, you’ll have an industry professional on your side to help forecast and work with you during market volatility. A rational, knowledgeable and experienced voice can help you remain focused on the big- picture financial plan, even when tough markets tempt you to make decisions based on emotions.
  4. Confidence – Would you know where to look for risks to your wealth or possible exposure to losses? Certified financial planners are trained and experienced in identifying risks in your portfolio that you may not see, like being over-allocated in a certain type of investment or industry; or lacking critical insurance vehicles for covering end-of-life expenses.
  5. Neutrality – While a certified financial planner should always have your best interests at heart, they’ll also be free of your own biases – which we all have. For instance, you may believe certain markets are unsafe, or that insurance products are a waste of money, and you may even have evidence to support your thinking. However, until you put all the elements of a plan together independent of pre-existing thinking, you’ll never know the full potential of your wealth strategy. A neutral sounding board is invaluable in this regard.